Feds' probe of James now takes close look at Newark land deals
By IAN T. SHEARN AND JOHN P. MARTIN
STAR-LEDGER STAFF

A federal investigation into the administration of former Newark Mayor Sharpe James has expanded, with more subpoenas delivered to City Hall and agents now scrutinizing real estate deals that benefited some of the ex-mayor's biggest supporters, according to sources close to the probe.

FBI agents in recent weeks have interviewed a number of city employees, and prosecutors also have demanded additional records from Newark City Hall, among them personnel files of at least four current and former city employees, including James' son Elliot.

The federal investigation began in late August, when federal officials issued subpoenas and executed a search warrant following a Star-Ledger story detailing travel expenses that James and his security detail had charged to a police department credit card. James, who stepped down in June after 20 years as mayor, remains a state senator.

While investigators continue to look at travel-related expenses, they also are probing the administration's sale of surplus city lots to developers at cut-rate prices, according to sources familiar with the investigation. Among those winning the no-bid contracts were several people with close ties to James, including some with little or no development experience, a Star-Ledger investigation found in 2005.

In June, a state Superior Court judge in Essex County halted the discount land sales, saying that the timing of developers' campaign contributions to James and other city officials and the approval of their projects "raises concerns."

James, now head of the newly created Urban Issues Institute at Essex County College, did not return phone messages left at his home and office. At a recent event sponsored by the institute, James declined to comment on the probe, saying, "We are not interested in that. I'm a college professor now."

On Nov. 2, federal investigators delivered a subpoena to City Hall, demanding the personnel files for Elliot James, the ex-mayor's son and former aide; Leonard Anton H. Wheeler, a school board member and former planning board member who was Sharpe James' legislative aide; Calvin West, who was James' top aide for years; and Diana Jarrell, an investigator for the city's Alcoholic Beverage Commission. A copy of the subpoena was viewed by The Star-Ledger.

It was unclear why the grand jury sought those records.

West, who is now employed as the governor's representative in North Jersey, said he was unaware that his records were subpoenaed, adding that he has not been called to testify before a grand jury.

"I've been out of City Hall for four years," West said. "Nobody has said anything to me."

Wheeler, now an Irvington school teacher, also said he was unaware that his records were subpoenaed. He said he had not been contacted about testifying, but would do so if called.

"I don't know what they hope to find by looking at my records," Wheeler said. "I wasn't paid much and I came to work."

Wheeler said he believes the investigation is politically motivated.

"This is about doing away with the old regime," Wheeler said. "This is about destroying Sharpe's legacy. Everything good that happened in this city in the last 20 years has Sharpe James' fingerprints on it."

Neither Elliot James nor Jarrell could be reached for comment.

In August, the U.S. Attorney's Office subpoenaed travel records and personnel files for 10 city employees, including five former police bodyguards, two department heads, two former mayoral aides and a former city councilman.

Anthony Fusco, a Passaic attorney representing three of James' former bodyguards, said his clients have been interviewed by FBI agents, but have not appeared before a grand jury. His clients - officers Jerome Ramsey, Robert Moore and Lucinda Simmons - are complying with federal investigators, he said.

Earlier this month, Newark attorney and longtime James confidant Raymond A. Brown and his son, Raymond M. Brown, went to City Hall and asked for copies of James' travel and expense account documents recently turned over to federal investigators, a spokeswoman for Mayor Cory Booker confirmed. City lawyers declined the request, said the spokeswoman, Desire Peterkin-Bell.

Neither Brown nor his son responded to phone messages left at their office.

In an Aug. 20 story, The Star-Ledger detailed James' use of a police department credit card to augment his travel, dining and entertainment expenses.

While in office, James used two credit cards to pay for his travel and expenses - one billed to the police department and the other to City Hall. According to incomplete records obtained by The Star-Ledger, James put more than $200,000 in charges on the two cards over the past 4 1/2 years, with more than $125,000 attributed to travel.

The two expense accounts came on top of $25,000 that the City Council added to his annual salary in 1993 to cover such costs.

In addition to demanding James' travel records, the U.S. Attorney's Office also has subpoenaed travel records and personnel files for 10 other city employees, including the police bodyguards, two department heads, two former mayoral aides and a former city councilman. Investigators also have asked for e-mails generated by James and another bodyguard, Adelino Benevente, dating to 2001.